Redefine International (RDI) revealed a hefty full-year loss after being hit with a £127.3m writedown - largely due to significant declines in values for regional offices. Accordingly, the group's adjusted net asset value dropped 23 per cent year on year to 39.06p a share. But the group has undergone an extensive restructuring following last year's reverse takeover into distressed property fund Wichford - leaving the company on a firmer footing.
Indeed, Redefine looks financially more secure after new loans and a post year-end placing - which raised £127.5m - were used to restructure both the Delta and VBG debt facilities, leaving just the £199.6m Gamma facility. This matured on 15 October 2012 and is subject to a standstill agreement while negotiations are in progress. Operationally, meanwhile, occupancy remained roughly stable on the year at 95.5 per cent, while non-executive director Michael Watters reckons that a bottoming out in the property recession is now looking nearer at hand.
Investec Securities expects adjusted NAV to slip to 35.9p for 2013, before rising to 37.2p in 2014. The broker also anticipates that the dividend will fall 36 per cent to 2.8p for 2013.
| REDEFINE INTERNATIONAL (RDI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 30.5p | MARKET VALUE: | £294m | |
| TOUCH: | 30.5-31p | 12M HIGH | 43p | LOW: 25p |
| DIVIDEND YIELD: | 14.4% | TRADING STOCK: | £136m | |
| PREMIUM TO NAV: | 33% | |||
| INVEST PROPERTIES: | £631m | NET DEBT: | 191% | |
| Year to 31 Aug | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 109 | -34.9 | -39.7 | 6.01 |
| 2009 | 58.0 | -47.9 | -54.2 | 3.05 |
| 2010 | 47.0 | -5.40 | -2.50 | 3.21 |
| 2011 | 49.0 | 5.11 | 1.18 | 4.13 |
| 2012 | 22.9 | -125 | -21.7 | 4.40 |
| % change | -53 | - | - | +7 |
Ex-div: 26 Sep Payment: 22 Nov | ||||
